Month 6, Day 117, 118, 119 & 120 - 36-month forex trading challenge - UK General Election.
Well it's Friday 13th here in the UK, which if you're superstitious can mean unlucky for some. However for Boris Johnson and the Conservative Party it's very much the opposite. Winning a landslide victory in yesterday's General Election, the Tories now sit on a significant majority to deliver Brexit.
GBP pairs, including my GBPUSD long (T17L) have gapped up overnight. Below the daily chart for GBPUSD shows this move, which is now being capped, probably via profit taking.
Will this move continue? Nobody knows, but all the signs in my opinion are to further upside potential. While I don't trade on fundamentals it's never a bad thing if they point in the same direction as your trade. On Twitter Donald Trump has congratulated Boris Johnson and even promised a lucrative trade deal with the US.
Yesterday there was more trade deal news with the US and China looking like they may be in a position to resolve previous issues. This news looks to have fuelled NZD and AUD bids. It appears to be risk-on, with CHF and JPY subject to offers.
I was stopped out of my EURCHF (T72S) and USDJPY (T73S) shorts, but these are more than paid for by the open profits on my longer-term SIG. 1 trades.
I made a mistake on my EURCHF (T72S) short (see below). While I didn't lose money (aside from broker fees) with my stop at entry, I missed out on the opportunity to make money. My initial target (T) was placed at a 2:1 reward-to-risk ratio, instead of 1:1. If I had placed this at 1:1 I would have made a 1% return on capital. Instead, I got greedy and decided to shoot for the bigger prize. This is an important reminder that grinding out small and consistent profits is what trading is really all about. Things can change in the blink of an eye and you never really know what's going to happen.
What's interesting about the General Election campaign is the power of keeping things simple. Leonardo da Vinci described simplicity as the ultimate sophistication. While rival parties presented the public with confusing policies, the Tories did indeed keep things simple, with one clear message – vote Conservative to get Brexit done.
This message seems to have resonated at the polling booths, and while Brexit was not the only issue, it seems to have played an important part.
I'm now sitting on a sizeable open profit in my long account. Psychologically this makes holding my SIG. 1 positions difficult. What if things reverse? Shouldn't I just take my profits and run?
This is fear talking and my job now is to hold for as long as I can. There may also be an opportunity to add to these winning positions when I review these longer-term trades at the weekend. In the meantime, there's likely to be some ebb and flow, but this is natural market price action. Ebb and flow in line with the trend is perfectly normal, and is something all profitable traders must learn to ride out.
This is one of the reasons it's advisable to focus on the charts (and your rules), and not the balance in your broker account(s)!
As Jesse Livermore (Reminiscences of a Stock Operator) said: 'It never was my thinking that made big money for me. It always was my sitting.'
Great advice and that's exactly what I intend to do – sit tight!
Is it really possible to turn £50K into £1M? Over the next 36 months I'm going to find out by trading my personal account with full transparency.
Follow my 36-month challenge to turn £50K into £1M.
Read my blog here: https://stgforextvforexchallenge.blogspot.com
Subscribe on YouTube here: https://www.youtube.com/channel/UCyGySJ5IeDjq-DIJPU7nYvw
[Please note, the information presented is general educational material and does not constitute trading advice.
Trading foreign exchange (forex) on margin carries a high level of risk and may not be suitable for you or your circumstances.
Before trading forex you should investigate all of the risks, including the possibility that you could lose more than your initial investment.
It’s important to consider your investment objectives, level of experience and risk appetite. If in doubt seek advice from an independent financial advisor.]
GBP pairs, including my GBPUSD long (T17L) have gapped up overnight. Below the daily chart for GBPUSD shows this move, which is now being capped, probably via profit taking.
Yesterday there was more trade deal news with the US and China looking like they may be in a position to resolve previous issues. This news looks to have fuelled NZD and AUD bids. It appears to be risk-on, with CHF and JPY subject to offers.
I was stopped out of my EURCHF (T72S) and USDJPY (T73S) shorts, but these are more than paid for by the open profits on my longer-term SIG. 1 trades.
I made a mistake on my EURCHF (T72S) short (see below). While I didn't lose money (aside from broker fees) with my stop at entry, I missed out on the opportunity to make money. My initial target (T) was placed at a 2:1 reward-to-risk ratio, instead of 1:1. If I had placed this at 1:1 I would have made a 1% return on capital. Instead, I got greedy and decided to shoot for the bigger prize. This is an important reminder that grinding out small and consistent profits is what trading is really all about. Things can change in the blink of an eye and you never really know what's going to happen.
This message seems to have resonated at the polling booths, and while Brexit was not the only issue, it seems to have played an important part.
I'm now sitting on a sizeable open profit in my long account. Psychologically this makes holding my SIG. 1 positions difficult. What if things reverse? Shouldn't I just take my profits and run?
This is fear talking and my job now is to hold for as long as I can. There may also be an opportunity to add to these winning positions when I review these longer-term trades at the weekend. In the meantime, there's likely to be some ebb and flow, but this is natural market price action. Ebb and flow in line with the trend is perfectly normal, and is something all profitable traders must learn to ride out.
This is one of the reasons it's advisable to focus on the charts (and your rules), and not the balance in your broker account(s)!
As Jesse Livermore (Reminiscences of a Stock Operator) said: 'It never was my thinking that made big money for me. It always was my sitting.'
Great advice and that's exactly what I intend to do – sit tight!
*********
Is it really possible to turn £50K into £1M? Over the next 36 months I'm going to find out by trading my personal account with full transparency.
Follow my 36-month challenge to turn £50K into £1M.
Read my blog here: https://stgforextvforexchallenge.blogspot.com
Subscribe on YouTube here: https://www.youtube.com/channel/UCyGySJ5IeDjq-DIJPU7nYvw
[Please note, the information presented is general educational material and does not constitute trading advice.
Trading foreign exchange (forex) on margin carries a high level of risk and may not be suitable for you or your circumstances.
Before trading forex you should investigate all of the risks, including the possibility that you could lose more than your initial investment.
It’s important to consider your investment objectives, level of experience and risk appetite. If in doubt seek advice from an independent financial advisor.]
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